Tourism development has often been regarded as an effective strategy for poverty reduction and sustainable livelihoods. However, tourism often triggers transformations of traditional livelihoods and complete dependence on tourism-based income. Presenting the case of Komodo village on Komodo Island, Indonesia, this study provides an empirical evidence for such transformation. Based on qualitative methods, this article discusses the ways in which tourism development has led the local fishing community to give up their fishing to become fully dependent on selling souvenirs. Although currently, the souvenir business offers adequate return for local people, potential threats to this new livelihood, like a limited market, fierce competition, a short tourist season, and high dependence on cruise ship visits, are looming large. If tourism declines, local people will be left with no options to sustain their livelihood.